The Daily Parker

Politics, Weather, Photography, and the Dog

Good analysis of the American-USAirways deal

Washington Post columnist Steven Pearlstein yesterday expanded on how American Airlines' unions bested management by dealing directly with US Airways:

Bankruptcy has changed [the unions' bargaining strengths]. Suddenly, airline executives discovered a way to unilaterally abrogate their labor agreements, fire thousands of employees and impose less generous pay and more flexible work rules. Indeed, the technique proved so effective that several airlines went through the process several times. The unions’ strike threat was effectively neutralized.

All of which makes what is happening at American Airlines deliciously ironic. Late last year, American finally decided to join the rest of the industry and make its first pass through the bankruptcy reorganization process after failing to reach agreement on a new concessionary contract with its pilots’ union.

Essentially, US Airways agreed to pay all of its pilots — the American pilots as well as its own — the higher American Airlines wages, along with small annual raises. In return, the union accepted less lavish medical and retirement benefits along with adoption of US Airways work rules that have been rationalized during two trips through the bankruptcy process. In the end, what probably sealed the deal was the US Airways promise of no layoffs.

He concludes:

For years now, Corporate America has viewed the bankruptcy court as a blunt instrument by which failed executives and directors can shift the burden of their mistakes onto shareholders, employees and suppliers. The auto industry bailout orchestrated by the Obama administration posed the first challenge to that assumption. Now the unions at American airlines have taken another step in curbing this flagrant corporate abuse and restoring the rule of law.

The more I think about the two airlines merging, the more excited I get about the deal. The unions and creditors (not to mention the Pension Benefit Guarantee Corp.) are right: a strong airline with competent management is good for everyone, including us customers.

Looks like Keynes is still right

Despite the rise of right-leaning economics ideology, reality stubbornly retains its liberal bias, with further evidence today coming from the latest UK economic figures:

The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012.

A sharp fall in construction output was behind the surprise contraction, the Office for National Statistics said.

"The huge cuts to public spending - 25% in public sector housing and 24% in public non-housing and with a further 10% cuts to both anticipated for 2013 - have left a hole too big for other sectors to fill," said Judy Lowe, deputy chairman of industry body CITB-ConstructionSkills, said.

Or, as Krugman points out, the Conservative's austerity measures have worked no better in the UK than anywhere else in the world:

Now Britain is officially in double-dip recession, and has achieved the remarkable feat of doing worse this time around than it did in the 1930s.

Now, the defense I hear from Cameron apologists is that the austerity mostly hasn’t even hit yet. But that’s really not much of a defense. Remember, the austerity was supposed to work by inspiring confidence; where’s the confidence? Basically, the expansionary aspect should already have kicked in; it’s all contraction from here.

Needless to say, Cameron and Osborne insist that they will not change course, which means that Britain will continue on a death spiral of self-defeating austerity.

It's amazing, really, how Keynes looked back at the Great Depression and learned something, which the right have forgotten for ideological reasons. It's simple: the way out of a recession is for governments to borrow money to get people back to work. This causes growth. The government can then pay back the money when revenues rise because of that growth. Right now, with real interest rates around –4% (yes, minus four), people will actually pay the US government to lend it money. The UK is in a similar situation.

So: the way for the West to get out of the recession is pretty clear, and today's UK GDP growth numbers confirm it. But politicians in most of the world don't believe the facts before them yet. And the recession drags on.

Barney Frank's exit interview

The retiring congressman sat down with New York magazine in February:

The main reason for the increase in partisanship is Newt Gingrich and the success of his decision to demonize the opposition as a way to win. That was reinforced by the right-wing takeover of the Republican Party, And finally, modern communications. Twenty years ago, people had a common set of facts that they read. They read opinion journalists, but they got their information generally from newspapers and from broadcasts. Now the activists, left and right, live in parallel universes which are both separate and echo chambers for each. If you’re on the left, you listen to MSNBC, you go to the blogs, Huffington Post, etc., and others, and you basically hear only what you agree with. If you’re on the right, you watch Fox News and the talk shows and you hear only what you agree with. That’s greatly intensified it. You know, it’s the primaries: People who want to be moderate lose. And when we try to compromise, what you find is not people simply objecting to the specific terms of the compromise but the activists object even to your trying to compromise, because they say, “Look, everybody I know agrees with us, so why are you giving in?”

Mike Oxley was chairman of that committee in 2003 until 2007. I was able to work with him. When I was the ranking member and he was the chairman, and even the chairman before that—so I was able to work with the Republicans from ’95, when they first took power, through 2007, when I became the chairman. I was able to work with Jim Leach and Mike Oxley on a lot of things, so I’d say that’s when things really changed.

When we took power, they moved very far to the right, and from the time I became chairman in 2007, it became virtually impossible to work with them. Spencer Bachus, who was the senior Republican, tried to work with me, and he almost lost his position because of it. When 2007 came, they really imposed this rigid discipline, so from 2007 on, as chairman, I was an institutionalist, but I spent almost all of my time making sure I had a majority. As I said, in 2007 and 2008, and 2009 and 2010—well, in 2009, we were doing the financial-reform bill, there were 71 members of the committee, 42 Democrats and 29 Republicans, and as I said, the last thing I thought of every night when I went to sleep was 36. Thirty-six is one more than half of 71, and I just had to keep 36 Democrats, always Democrats, never once did I have a Republican in my four years as chairman who was critical to a majority.

He's forthright and lucid. And he's firmly in the reality-based community. He will be missed.

Chelsea Clinton at NBC

NBC News has hired the 32-year-old Clinton as a feature reporter. Naturally, given her parents, there is some controversy:

Upon her arrival [at 30 Rockefeller Center], Chelsea was given a welcome bag, filled with NBC swag, 30 Rockers tell me. NBC’s David Gregory responded by jokingly asking: “Where’s my welcome bag?”

Gregory’s joke hints at the unprecedented level of special treatment Chelsea receives: she didn’t do live shots on her Rock Center debut; she gets chauffeured everywhere in a town car while others her age strap hang with the suckers in Gotham’s sewers; she has her own personal spokesperson; and she has her own chief-of-staff, Bari Lurie. (Lurie is to Chelsea what Huma Abedin is to Hillary: a fiercely loyal female aide and confidante, who logged over 7,000 miles with her during the 2008 campaign.) Other top talent at the network noticed that luxury: Lester Holt, Hoda Kotb, Natalie Morales, and Savannah Guthrie all share a single assistant. (An NBC spokesperson says, however, that Chelsea pays for her own chief of staff.)

“Everyone needs to get a grip,” says [a] high level [NBC] executive. “She’s hardworking, she’s taking it very seriously. She really wants to genuinely do these Making a Difference pieces. She knows she’s a lightening rod. When people write nasty things, she takes the lumps.” After all the bad press during the roll out, there were fears Chelsea was going to pack it in. Instead, she decided to tough it out. “I respect that,” says the NBC insider. Clinton’s personal spokesperson, Matt McKenna, had strong words for her detractors: "When Chelsea's critics are ready to step forward and use their names, she'll be more than happy to answer them. In the meantime, she's enjoying working for NBC and NBC is glad she's a part of their team."

So how did she do in her first segment? Take a look:

I've seen a lot of TV, both amateur and professional. This is average professional work. It's a good package, maybe not that exciting, but one that tells a harmlessly good-feeling story.

Of course Clinton won't have the same treatment at NBC as other kids her age; she's already a public figure, with a view of history that even the top Medill grads probably won't have had. Of course this will cause resentment. I hope Clinton handles it with the same grace she's already handled the derision and ridicule people have heaped on her since she turned 13. The only question that matters in the present situation is: does this hire make sense for NBC? I think we'll see pretty soon.

The psychology of politics

I'm reading Chris Mooney's latest, The Republican Brain, which attempts to explain the differences between conservatives and liberals based on their psychological makeups. For instance, conservatism correlates negatively with openness but positively with conscientiousness. He also talks about episetemic closure, which psychology predicts (and we can observe) is far more likely on the right than on the left.

I plowed half-way through the book yesterday, and I expect to finish it on the plane Wednesday. As Jon Stewart would say, buy it, read it, it's on shelves now.

I'm walkin', yes indeed

Transport analyst and writer Tom Vanderbilt has a four-part series in Slate about the crisis in American walking:

The United States walks the least of any industrialized nation. ... Why do we walk so comparatively little? The first answer is one that applies virtually everywhere in the modern world: As with many forms of physical activity, walking has been engineered out of existence. With an eye toward the proverbial grandfather who regales us with tales of walking five miles to school in the snow, this makes instinctive sense. But how do we know how much people used to walk? There were no 18th-century pedometer studies.

[S]ince our uncommon commitment to the car is at least in part to blame for the new American inability to put one foot in front of the other, the transportation engineering profession’s historical disdain for the pedestrian is all that much more pernicious. In modern traffic engineering the word has become institutionalized, by engineers who shorten pedestrian to the somehow even more condescending “peds”; who for years have peppered their literature with phrases like “pedestrian impedance” (meaning people getting in the way of vehicle flow).

As Vanderbilt says, traffic engineers and our obsession with the car have driven most of the problems. Even though engineer Charles Mahron and people like him crusade against the worst urban designs (see, e.g., Brainerd, Minn.), I don't think anything will change without a disruptive and permanent external shift. I don't really want $10 gas, but wow would that focus people's attention on driving.

Chris Christie's mendacity

Krugman explains:

Mr. Christie’s big move — the one that will define his record — was his unilateral decision back in 2010 to cancel work that was already under way on a new rail tunnel linking New Jersey with New York. At the time, Mr. Christie claimed that he was just being fiscally responsible, while critics said that he had canceled the project just so he could raid it for funds.

Now the independent Government Accountability Office has weighed in with a report on the controversy, and it confirms everything the critics were saying.

The governor asserted that the projected costs were rising sharply; the report tells us that this simply wasn’t true. The governor claimed that New Jersey was being asked to pay for 70 percent of a project that would shower benefits on residents of New York; in fact, the bulk of the financing would have come either from the federal government or from the Port Authority of New York and New Jersey, which collects revenue from residents of both states.

But while it’s important to document Mr. Christie’s mendacity, it’s even more important to understand the utter folly of his decision. The new report drives home just how necessary, and very much overdue, the tunnel project was and is. Demand for public transit is rising across America, reflecting both population growth and shifting preferences in an era of high gas prices. Yet New Jersey is linked to New York by just two single-track tunnels built a century ago — tunnels that run at 100 percent of capacity during peak hours.

Someday—maybe five years from now, maybe ten—the Port Authority will have to resume the tunnel project. And then, it will be much more expensive, and much more dire.

Will people remember why?

One step closer to civilization

Connecticut's house has voted to repeal the death penalty, which will make the state the 17th to abolish it:

Senate Bill 280 cleared the House 86-62, a vote that broke largely along party lines. The bill now goes to Gov. Dannel P. Malloy, who has pledged to sign it, ending a form of punishment in the state that dates back to Colonial times when those convicted of being witches were sent to the gallows.

[S]upporters of the repeal effort say the state's death penalty is irrevocably broken — just one man, serial killer Michael Ross, has been executed in the past 50 years, and that was after he waived his appeals. Rep. T.R. Rowe, a Republican from Trumbull who supported the repeal bill, called the current death penalty "a paper tiger."

Others pointed out that government is not infallible, and the chance, however slight, of an innocent person being executed is too grave a risk when the punishment is death.

And just a quick reminder, here are the jurisdictions that still have capital punishment: Belarus, China (PRC), Cuba, Egypt, India, Iran, Iraq, Japan, Malaysia, Mongolia, North Korea, Pakistan, Saudi Arabia, Singapore, South Korea, Taiwan (ROC), Tonga, United States, Vietnam. We executed 46 people in 2010, putting us ahead of everyone in the world except China (over 4,000), Iran (252), North Korea (60), and Yemen (53). Great company to be in.

Oh, and thanks to a couple southern states, we're the only democracy that executes children.

Connecticut is making the right move. I hope the rest of the country follows suit.